Soybean Markets Bounce Back After Midweek Decline
Strong Weather Forecasts and Export Reports Provide Support
The soybean market recovered significant losses from earlier in the week, with Thursday and Friday seeing prices close up by 7 to 13 cents. However, January contracts ended the week down 13 ¾ cents. According to CmdtyView, the national front month Cash Bean price rose by 11 1/4 cents, now sitting at $9.24 ¾. Soymeal futures showed promising gains as they increased by $6.60 to $11.20 per ton, with January rising $8.30 for the week. Conversely, Soy Oil futures experienced a decline, dropping 8 to 54 points during the session, as the front month lost 313 points over the week.
Weather conditions are also playing a role, with forecasts indicating limited rainfall in much of Argentina over the next 8-14 days. There’s expectation of light showers across the western half of the country next week, while Brazil is forecasted to see normal rainfall levels.
The weekly CFTC Commitment of Traders report indicated that speculators added 17,932 contracts to their net long position in soybean futures and options as of December 17, boosting their total net position to 76,252 contracts. Meanwhile, speculators were found to be holding a record net short position in soybean meal futures at 88,971 contracts.
According to the USDA Export Sales report released Thursday morning, total marketing year shipments reached 25.173 million metric tons (MMT), which is a 22% increase compared to last year and marks a four-year high. This figure represents 51% of the USDA’s full-year estimate of 1.825 billion bushels (bbu), outperforming the typical pace of 47%. Additionally, bean commitments reached 38.708 MMT, a 10% increase from last year and 78% of the USDA projection—1 percentage point ahead of the average pace.
Jan 25 Soybeans closed at $9.74 1/2, up 11 1/2 cents,
Nearby Cash stood at $9.24 3/4, up 11 1/4 cents,
Mar 25 Soybeans closed at $9.79 1/4, higher by 12 3/4 cents,
Jul 25 Soybeans ended at $9.98, a rise of 13 cents.
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein represent those of the author and do not necessarily reflect the views of Nasdaq, Inc.
